Bulls and Bears Stalemate...

Yes, plenty of investors thinking that the bottom is here and plenty of investors thinking that the worse is still to come. That produced the stalemate we witnessed these two days as the Dow continue to struggle at the bottom of its short term neutral channel. Yes, the neutral trend is extremely strong and with so many reasons to be optimistic and pessimistic, its hard for the market to go anywhere. Take today's jobless claims for example (see economic calendar). Claims are lower than the previous reporting but higher than consensus... is that bullish or bearish? This is the kind of confusing signals that investors get around market bottoms. For now, the Dow remains in its short term and intermediate term neutral trend and will continue to be so until something changes significantly.